Solid Quarter as Sales Growth Re-Accelerates; Outlook Remains Favorable

Research evidence excerpt

Solid Quarter as Sales Growth Re-Accelerates; Outlook Remains Favorable

quarter of +MSD% growth and a positive inflection in U.S. Drinkware. 52-Week High / Low US$51.29 / US$28.98

Shares Out (mil) 76.7 Growth was broad-based across the portfolio and driven by innovation, with strong sell-

Market Cap. (mil) US$2,939.9

in and sell-through trends at Wholesale. C&E momentum accelerated to +11% y/y, led Avg Daily Vol (000) 1,490

by soft coolers and bags (Camino, Daytrip). In Q1, demand continued to outpace supply Net Cash Per Share US$1.67

for certain products, with additional capacity expected in 2H. By geography, International Debt to Total Capital 9.8%

sales were +9% y/y, compared to U.S growth of +8% y/y. Wholesale grew an impressive Div Yield 0.00%

+19% - the strongest Wholesale quarter in >3 years. Growth was driven by +DD% sell- Fiscal Year End Dec

through trends in the U.S., as well as healthy inventory mgmt. Lastly, DTC was ~flat y/y,

primarily due to softer corporate sales (~25% of DTC). Mgmt. did note corporate sales Price Performance - 1 Year

returning to more normalized levels, and the softer demand being primarily a Q1 event. USD

(2) Updated 2026 Outlook. 2026 guidance was raised following strong Q1 results, with 55

topline growth now expected to be +7%-8% y/y, at the high-end of mgmt.'s prior guide. By 50

region and category, topline expectations remain unchanged (International +high-teens 45

to +20%, U.S. +LSD% to +MSD%, C&E +HSD% to +LDD%, and Drinkware +MSD%).

Gross margin was also raised to the high-end, with GM% expected to decline ~200bps 40

in 1H, followed by ~50bps of expansion in 2H as tariff impacts are lapped. Importantly, 35

guidance does not include a meaningful benefit from a reduction in tariffs. Adj. OM% 30

was increased to 14.6% (vs.